Over the last twenty years, small company stocks have earned an average return of 14.7 percent annually, long-term treasury bonds have earned 6.2 percent, and U.S. Treasury bills have earned 2.3 percent, and the inflation rate was 1.9 percent. (a) (0.5 point) Compute the risk premium on the small-company stocks. (b) (0.5 point) Compute the risk premium on the long-term treasury bonds. Paragraph B 166